Louisiana Sweepstakes Ban Bill Awaits Signature from Governor

Few legislative issues enjoy bipartisan unanimous support. But that's what has happened with a gambling ban in Louisiana, which has passed a bill to prohibit sweepstakes casinos by a combined vote of 138-0.

Only a signature of approval from Governor Jeff Landry remains for Senate Bill 181 to transform from a bill to a law. That action is expected to occur before the state legislature ends this session on June 12.

Originally sponsored by Senator Adam Bass, SB 181 flew through the Louisiana Senate and passed unanimously at 39-0 in April. Since, a few minor changes have been made to the language in SB 181, but the basics of the legislation remained the same when the House voted 99-0 to pass it on Monday.

Following procedure, the Senate will now have a chance to review the amendments made to the Bass' bill that passed the House. That is likely to be a mere formality, and SB 181 will be sent to Landry's desk before June 12 for a signature.

Louisiana is the second state to pass a bill that bans so-called sweepstakes casino platforms. If Gov. Landry signs it into law, it will join Montana as the only states prohibiting such online applications.

What Sweepstakes Bill Means for Louisiana

If Landry makes SB 181 a law, it will prohibit all sweepstakes casino apps. Those operators will no longer be able to offer their products in the Pelican State.

Bass and his supporters have long wanted to eradicate sweepstakes casinos from Louisiana. The state has legal sports betting, legal casinos, and a state lottery. But, it has yet to legalize online casinos.

Online sweepstakes casino applications are platforms that operate much like casinos, except they utilize dual-currency payment mechanisms. That means players can wager without placing any of their real money at risk. Instead, the player can win coins, tokens, or some other form of digital currency. If they win, consumers can trade in the coins or tokens etc. for real cash prizes, trips, and rewards.

This form of "dual-currency" is a slippery slope that many states are not willing to stomach, even as many jurisdictions continue to legalize gambling.

By not requiring users to fund their accounts, sweepstakes casinos permit customers to start playing casino games quickly. There are also concerns over dangers to underage citizens.

During debate over his bill in April, Sen. Bass explained the trouble with sweepstakes casinos, which are mobile apps that can easily be added to cell phones.

“So-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling,” Bass said.

Opponents Claim Sweepstakes Ban is too Broad

Not everyone is happy about the developments in Louisiana. The Social and Promotional Games Association (SPGA) has decried efforts to pass sweepstakes casino bans.

“Legal sweepstakes platforms operate under well-established guidelines and are used by millions of adults, including Fortune 500 companies like Microsoft and Starbucks, to engage consumers through lawful, free-to-play promotions,” the SPGA said in a recent statement addressing possible bans in several states.

“[The Louisiana] bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm,” the SPGA said. “It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense.”

While the SPGA claims non-casino bases sweepstakes games will be banned by the Louisiana bill, Bass disagrees. The Senator stated that regulators in his state “have no interest in going after Starbucks or Marriott or McDonald’s and are solely focused on putting an end to sweepstakes casinos in this state.”